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Eliminating a deflationary trap through superinertial interest rate rules

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Author Info
Sugo, Tomohiro
Ueda, Kozo

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Abstract

This paper demonstrates that, even in the presence of a zero lower bound on nominal interest rates, central banks can eliminate a deflationary trap by the conduct of interest rate rules that have superinertia.

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File URL: http://www.sciencedirect.com/science/article/B6V84-4R9JTPH-1/1/a578e3d5d5832d5666b4e7d3279137cd
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Publisher Info
Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 100 (2008)
Issue (Month): 1 (July)
Pages: 119-122
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Handle: RePEc:eee:ecolet:v:100:y:2008:i:1:p:119-122

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